Is tax compliance being over looked in the world of tracking and telematics?

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tax calculations

An article published last week (10/12/2015) by Fleet News sheds light on how fleet managers are struggling to manage a multiple of challenges when it comes to their fleet.

The article was based on a commissioned survey that went out to over 200 fleet managers and it was disturbing to see that in many cases, simple HMRC compliant information was unavailable to them.

The figures show approximately two fifths of fleet managers are not able to capture data regarding the reason for journey (42%), or whether the trip was business or private (36%). I wonder of how many surveyed had company cars in their fleets? This is basic information for accurate mileage claim records and these shortfalls scream HMRC audits incoming.

With the biggest concern for fleet managers being tax compliance (27%)- I pose the question ‘is tax compliance being over looked in the world of tracking and telematics?’

I mean, HMRC audits are not a pleasant ordeal. Of those fleet managers who have had a HMRC audit, 43% found the process difficult for reasons including it being time consuming, complex, and requiring data gathered from multiple sources. Surely it would just be smarter to have a system that was 100% tax compliant in the first place.

We regularly come across companies that have invested in a system that provides nothing more than a live map. In the majority of these cases the main reason behind their choice is price. What these companies fail to realise is the wealth of information being gathered that isn’t being utilised- The kind of information that turns a cheap system into a cost neutral one.

For those companies and fleet managers with concerns about tax compliance or simply looking for a way to reduce costs, give ABAX a call. Our ‘Triplog & Tracking’ technology is 100% tax compliant and our user friendly system gives you the functions and reports you need to drive fleet costs down.